Notwithstanding reports of tension building up along the Indo-China border, the two neighbouring countries need to move hand-in-hand at WTO to protect interest of over 100 developing nations in the Doha trade negotiations, sources said.
“China is a critical player and will hold the balance of power. India needs to align with them,” a highly placed official said after a week of serious negotiations which resumed at the WTO headquarters after a gap of 14 months.
While India, Brazil and South Africa have played a leadership role for developing countries in navigating the global trade negotiations, China has so far maintained a low profile despite its growing economic prowess.
“China has not taken any specific position…but the developing countries need to court Beijing for striking a good deal and ensuring a market access for them without opening the floodgates for the rich nations,” he said.
Amidst reports of Chinese incursions into the Indian territory, the government has asked media to exercise restraint and not play up the issue. The Indian negotiating team in Geneva, led by Additional Secretary D K Mittal, had a couple of bilateral meetings with the Chinese counterparts to strengthen the alliance of the developing countries against the US and the EU, which are expected to increase pressure for market access in the emerging economies, a source said.
Doha talks in Geneva resumed following meeting of key ministers at New Delhi on September 3-4. Growing at a pace of 9 per cent–the fastest in the world–China has not only emerged among the top exporters, but also the third largest importer, shipping in merchandise worth USD 1.13 trillion in 2008.
With such big imports, China enjoys enough clout for market access in the developed world, which is looking for opportunities in emerging Asia at the time of the global recession.
With India maintaining its position of being the second fastest growing economy, the two countries forging a common strategy could be quite a decider in the Doha negotiations, which were to conclude in 2005 but remained inconclusive due to vast differences between developed and emerging economies. “In view of their rising importance in the global trade landscape, it would be useful for India and China to examine the possibility to work on issue-based alliance in the WTO along with the other developing countries,” Industry body
FICCI’s Secretary General Amit Mitra said. Mitra said issue-base alliance would be vital for safeguarding the interest of the developing world in the ongoing Doha Round of negotiations.